HDFC Mutual Fund announces HDFC Silver ETF to encourage investors to invest in silver the digital way.HDFC Asset Management Company Ltd., one of India’s leading mutual fund houses that manages assets worth INR 4.15 trillion, has announced the launch of HDFC Silver ETF, in order to expand their suite of “HDFC MF Index Solutions”, which HDFC Mutual Fund has been managing for the past 20 years. HDFC Silver ETF is an open-ended Exchange Traded Fund (ETF) replicating/tracking performance of Silver. The captioned NFO opens on August 18, 2022, and closes on August 26, 2022.
The investment objective is to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error*. Investing in physical silver and storing it in a safe manner could be difficult for an individual, hence HDFC’s Silver ETF NFO gives an opportunity to the investors to digitally invest and own silver which is easily tradable during market hours, replicates/tracks the performance of silver, and diversifies one’s portfolio at a low cost.
Commenting on the launch, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Co. Ltd. said, “HDFC AMC has always maintained an investor-first approach offering our clients with the most effective solutions while launching products. This Fund will provide investors an opportunity to enhance portfolio diversification by investing in a metal with a differentiated risk-return profile.”
The Fund encourages consumers to invest in silver due to its multi-purpose utility in industrial activities such as portable devices, industrial equipment, Electric Vehicles, mobility, energy production and telecom. Silver demand outlook is robust on account of higher adoption in new age and green technologies. Along with the above, it is also a precious metal which hedges against currency depreciation since it is globally priced.
*There is no assurance that the investment objective of the Scheme will be realized.
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